Accounting for a Positive Correlation between Pension and Consumption Taxes

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Eung-Sik Kim Chul-In Lee
• 간행물 정보: 『한국재정학회 학술대회 논문집』2012년도 한국재정학회 추계 정기학술대회, 1611~1638쪽, 전체 28쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2012.09.07

영문 초록

We attempt to account for a puzzling comovement between pension level and the consumption tax rate observed in the OECD data. First, using a standard overlapping generations model with lifetime uncertainty, we can find a set of optimal policy combinations of taxes and pension, but they cannot account for the data. Second, to resolve this puzzle, we consider welfare states where pension level is higher than the optimal level due to external and/or institutional reasons. In this setting, our analysis of optimal tax mix demonstrates that strengthening consumption taxation (relative to income taxation) can improve welfare, i.e., accounting for the proposed puzzle. Third, we also find that population aging further boosts the role of consumption taxation, reinforcing our main findings. Finally, our results lend support to recent pension reforms: when expanding welfare benefits, most countries tend to resort to consumption tax financing.

목차

Abstract

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. The Ramsey Problem

Ⅳ. Quantitative Analysis

Ⅴ. Conclusion

References

키워드

pension consumption tax optimal policy mix OLG model